Cellreturn

Collects dead e-rickshaw and scooter batteries so producers meet EPR targets

Climate Tech Logistics Tier 2–3 Cities

TL;DR Cellreturn runs scheduled pickup routes that collect worn-out lithium packs from e-rickshaw dealers, scooter showrooms and mechanics in smaller towns. It drops them, weighed and documented, at registered recyclers. Battery and vehicle producers pay per kilogram because every kilogram counts toward the collection targets the law now sets them.

The problem

India's e-rickshaw fleet is huge and still growing, with about 4.8 lakh passenger e-rickshaws and 86,000 goods e-rickshaws retailed in FY26 alone[1]. Their packs wear out within a few years and get swapped at small dealers and roadside mechanics, usually nowhere near a recycling plant.

The law expects producers to get those packs back. For e-rickshaw batteries the yearly collection target is at least 70% by weight of what the producer sold three years earlier, and two-wheeler packs join the same rule from 2026-27[2]. Yet the big recyclers mostly collect from OEM factories in tier-1 and tier-2 cities[3]. Waste batteries can go only to registered recyclers and not to traders[4], but how is a dealer in a district town supposed to get them there? There's no easy way.

The idea

What it does, in regulatory terms: collection and transport of waste batteries under the Battery Waste Management Rules 2022, as a contracted partner of registered producers and recyclers. Cellreturn does not test, repair, refurbish or dismantle packs. Collection points are registered with the state pollution control board under a producer's or recycler's registration.

Dealers and mechanics join a weekly route. They get a lined, fire-safe bin, a phone app to log each pack by brand and weight, and payment per kilogram on pickup. A small truck runs the route, carrying packs discharged below 30% charge in approved containers, as CPCB guidelines require[4]. The packs go to a partner recycler, which weighs them in and credits the collection to the producer who paid for it.

The original idea also did health checks on used packs, and I've cut that. Grading packs for reuse means acting as a refurbisher, and a separate idea in this directory covers it. Here the business is the boring but necessary bit - getting dead packs out of small towns, legally and on record.

Who pays

Producers pay a fee per kilogram collected, because they carry the targets and a lot of smaller e-rickshaw brands have no take-back network of their own. Recyclers are a second payer, since they need steady feedstock. Dealers and mechanics get paid per kilogram for handing packs over. I found no published per-kilogram rates, so pricing is an assumption for the pilot.

Why now

Two-wheeler EV packs enter the collection targets in 2026-27[2]. A 2024 amendment set EPR certificate prices between 30% and 100% of the penalty for missing targets[5], so falling short now has a known price tag. And CPCB's July 2026 guidelines openly let producers build collection with dealers, service networks and logistics partners[4].

Market signal

There's no public figure for tonnes of EV packs retiring in India each year. The firm number is the target itself - 70% by weight of e-rickshaw packs sold three years earlier, every year[2]. FY26 sales of 24.52 lakh EVs across segments show how big the later waves will be[1].

Who's already doing this

One large battery recycler picks up from OEMs within 24–48 hours in larger cities[3]. A big three-wheeler maker sends its used batteries to another recycler[6]. A third buys through OEM contracts, auctions and aggregators[7]. All of them sit at the plant end. The gap is the dealer counter in a district town, selling packs from small brands that have no reverse-logistics deal.

How hard is it?

Difficulty Moderate (46/100)
Starting capital ₹55 L–1 Cr
Time to launch 6–9 months

The trucks and routes are ordinary logistics. The paperwork is not, because collection points need state consents, every load needs a manifest and inter-state trips need permission from each state[4]. Swollen or damaged packs raise fire risk on the road, and route density decides whether the numbers work at all.

Licences and approvals

Yes, this is a regulated business. Waste batteries count as hazardous, and only registered players may handle them.

  • Partner registration under the Battery Waste Management Rules, 2022, before your first pickup. Producers can't deal with unregistered entities, so contract only with registered producers and recyclers[2].
  • State consent and hazardous-waste authorisation for collection points, from the state pollution control board, before any site stores packs. Run them under a partner's registration and get a written legal view[4].
  • Transport compliance, before trucks roll. Lithium packs travel below 30% charge in lined containers, the state board is notified before handover, and inter-state trips need each state's permission[4].
  • Company registration with the MCA and GST registration, before you invoice producers.

Building this outside India? The categories above usually have a local equivalent, so check with your own regulator.

How AI can power this business

  • Route planning. Predict which dealers will have a full bin this week from past pickups and local EV sales, so the truck skips empty stops.
  • Pack logging from photos. A dealer snaps the label and the app reads brand, chemistry and approximate weight, which cuts typing and errors.
  • Compliance paperwork. Auto-fill pickup manifests, state board notices and producer reports from the day's logs.
  • Pricing signals. Track recent EPR certificate trades so you know what producers can afford to pay per kilogram.

Don't trust AI to judge whether a damaged pack is safe to move. A trained handler checks every swollen or leaking battery.

Want to work out the AI layer for Cellreturn? Talk to Yash →

Biggest risks

  • Informal buyers pay more. Scrap traders who ignore the rules can outbid a compliant collector at the dealer counter.
  • Producer budgets. If certificates from recyclers work out cheaper than paying for collection then producers may just buy certificates.
  • Fire in transit. One truck fire could cost you your permits and your partners.

Our take

I think this is a sound business for a founder from logistics or waste management who has patience for pollution control boards. If you want a tech-first company then skip it. Prove two things first in one district - 40 dealers will hand over 5 tonnes a month, and one producer will pay per kilogram for it.

Questions founders ask

Plan for roughly ₹55 L–1 Cr, mostly on trucks, fire-safe bins and a field team for your first district.

Do I need a licence to collect used EV batteries in India?

Yes. Collection points need state consent and hazardous-waste authorisation, and you must work with producers and recyclers registered under the Battery Waste Management Rules.

Can I start a battery collection business in another country?

Yes, wherever producers carry take-back duties for batteries. Check your local battery waste and hazardous-goods transport rules first.

Download the kit

The free Cellreturn validation kit has the line-by-line capital breakdown, the effort scoring, the battery-waste consent and transport checklist, a 14-day validation sprint with pass/fail targets, a 90-day launch plan, 10 interview questions for dealers, producers and recyclers, and 5 assumptions to test. Download the kit →

Talk to Yash

Thinking about building Cellreturn or something close to it? The make-or-break work is pricing pickups so dealers pick you over the scrap trade while producers still pay, and I'm glad to pressure-test those numbers with you. If you need a hand, you know where to find me. Talk to Yash →

Sources

  1. FADA, "FADA releases FY 2026 and March 2026 vehicle retail data", 2026-04. https://www.fada.in/images/press-release/169d329fc83770FADA%20releases%20FY%202026%20and%20March%202026%20Vehicle%20Retail%20Data.pdf
  2. MoEFCC, "Battery Waste Management Rules, 2022", Schedule II, 2022-08-22. https://cpcb.gov.in/uploads/hwmd/Battery-WasteManagementRules-2022.pdf
  3. EVreporter, "Driving battery recycling and second-life solutions: chat with Rajat Verma, Lohum", 2023-06-30. https://evreporter.com/driving-battery-recycling-and-second-life-solutions-chat-with-rajat-verma-founder-ceo-lohum/
  4. CPCB, "Guidelines for collection, handling, storage and transportation of waste batteries", 2026-07. https://eprbattery.cpcb.gov.in/upload/adminDoc/Guidelines%20for%20Collectio,%20Handling,%20Storage%20and%20Transportation%20of%20Waste%20Batteries.pdf
  5. MoEFCC, "Battery Waste Management (Amendment) Rules, 2024", G.S.R. 190(E), 2024-03-14. https://cpcb.gov.in/uploads/hwmd/Battery-WasteManagementRules-2024.pdf
  6. EVreporter, "Mahindra Last Mile Mobility and Attero partner for EV battery recycling", 2023-12-21. https://evreporter.com/mahindra-last-mile-mobility-and-attero-partner-for-ev-battery-recycling/
  7. EVreporter, "RecycleKaro's battery recycling operations in India", 2024-02-23. https://evreporter.com/recyclekaros-battery-recycling-operations-in-india-chat-with-rajesh-gupta/

For illustration only. Names are fictional and ideas hypothetical; sourced facts are real but may be out of date. Nothing here is legal, financial or professional advice, and Yash Khatri is not personally liable for any use of it. Read the full disclaimer.

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